Commercial Applications

A garment manufacturer in Gujarat produces T-shirts but faces challenges in selling the products due to a lack of transport and insufficient market knowledge. What commercial activities can resolve the hindrances faced by the manufacturer?

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Answer

The garment manufacturer in Gujarat is facing two specific hindrances — the hindrance of place (lack of transport) and the hindrance of knowledge (insufficient market knowledge). The following commercial activities (auxiliaries to trade) can resolve these hindrances:

  1. Transportation — Modern means of transport (road, rail, air, water) can carry T-shirts safely and quickly from the Gujarat factory to distant markets across the country, removing the hindrance of place and creating place utility.

  2. Advertising — Advertising in newspapers, television, radio, internet and social media can inform potential customers across the country about the T-shirts, their features, prices and availability. This removes the hindrance of knowledge and persuades customers to buy.

  3. Warehousing — Warehouses at strategic locations can store T-shirts until they are demanded by retailers in different cities, removing the hindrance of time.

  4. Banking — Banks help in receiving payments from buyers in different cities through cheques, drafts, and digital transfers, and also provide finance for expansion, removing the hindrance of finance.

  5. Insurance — Insurance protects the T-shirts against risks of fire, theft, and damage during transport and storage, removing the hindrance of risk.

By using these auxiliary services of commerce, the manufacturer can efficiently sell T-shirts across the country and overcome the hindrances faced.

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